Building Innovative Industrial Assets to Meet the Market.

Step inside a modern industrial shed today and it’s a world away from the four-walled grey storage spaces of the past. Polished concrete floors replace dusty slabs, natural light floods through opening windows and high-end finishes offer a sleek, professional feel.

The industrial shed has been reimagined. Built to impress and blend functionality with premium finishes, a new era of industrial units has emerged to meet the needs of today’s market.

As light industrial areas transform into hubs for knowledge-based industries, e-commerce businesses, artisans and clean enterprises, the traditional shed has had to evolve. No longer only about logistics, modern industrial spaces prioritise design, functionality and street appeal.

Business owners want workspaces that are comfortable, welcoming for visitors and reflective of their brand. Developers are responding with innovative, flexible, high-end spaces carefully designed to meet the market.

“The rule book has been thrown out the door on sheds since Covid,” says RWC Noosa & Sunshine Coast Principal Paul Butler. “Sheds for small business were traditionally larger, generally 500m²* up to 2,000m²*. Now, a lot of Sunshine Coast industrial land is dedicated to smaller units that provide living accommodation, small business space and storage for caravans, horse floats, boats and other personal storage requirements.”

“The way they present, their facilities, the landscaping – absolutely everything has been reimagined. There are sheds with pools, basketball courts or even skate ramps. The stories of what people are doing are endless. And we’re achieving good prices per metre for both sales and leasing relative to size for quality properties. It’s not unusual to see a sub 50m²* unit selling for $9,000 to $10,000 per m²*, particularly in boutique locations such as Moffat Beach or Noosaville.”

CLEAN BUSINESSES RESHAPING INDUSTRIAL ESTATES

A new wave of clean businesses looking for multi-use modern spaces is shaping demand for smaller, high-end units.

From skincare companies and fashion brands to electricians, e-bike retailers, and e-commerce startups, businesses are snapping up high-end industrial units almost as soon as they hit the market, says RWC Noosa & Sunshine Coast commercial property consultant Rachel Cadamy.

“It’s not just about mechanics and heavy trades anymore. Businesses want showroom-style spaces with big glass frontages where they can showcase their products and create a more refined, professional presence,” says Rachel.

Colleague David Brinkley concurs saying that many business owners are willing to buy off the plan and wait 12 months for the right property.

“Breweries, distilleries and boutique manufacturers seek flexible spaces that seamlessly integrate manufacturing, showrooms and retail. Small-scale operators need storage, office space and opportunities to connect with like-minded businesses.” David said.

FLEXIBILITY AND STATE-OF-THE-ART INCLUSIONS

Dynamic commercial property duo Tallon Pamenter and Alicia Pregnell, who have successfully sold 10 of the 36 designer units at Coolum’s new Quanda Business Park, say developers need to be more strategic in this new era.

“Gone are the days of installing four tilt-up walls, slapping on some paint and calling it a shed. Buyers expect more – better finishes, improved facades and functional design. Flexibility is key. Developers selling off the plan are conveying a willingness to customise sizes and features according to need,” Tallon said.

“One prospective tenant sought a large warehouse but needed the mezzanine enclosed. We structured a deal where the owner funded the fitout, recouped costs over the lease term, and locked in a great tenant at a premium rent — a win for all parties.”

Common Premium Features

• Adequately sized mezzanines in proportion to warehouse space
• High-end kitchens and bathrooms with superior finishes
• Wide driveways and multiple roller doors for easy access and logistics
• Secure and undercover parking for added convenience
• Professionally landscaped gardens to enhance street appeal
• Trade hub-style shared facilities including communal office spaces and kitchenettes
• Showroom-style frontages to accommodate retail integration.

Caretaker residences have evolved from basic on-site residences to high-end living spaces, offering the comfort and style of boutique townhouses. Alicia suggests these new style apartments suit a diverse range of buyers.

“We’re seeing younger business owners who love the flexibility of running their operations from the warehouse while having a stylish home attached,” says Alicia. “At the same time, we have retirees who’ve sold their acreage and want a low-maintenance lifestyle, space to store their caravan and the security of a gated industrial complex.”

DIVERSE DEMAND DRIVERS

Tallon reflects on the diverse factors fuelling demand for premium smaller industrial spaces, driven by shifting market dynamics, evolving business models and changing investor priorities.

Self-Managed Super Funds

Investors are turning to industrial properties within their SMSFs and leasing them back to their businesses as a strategic long-term investment. “There’s a sense of comfort associated with owning bricks and mortar instead of dealing with a fluctuating stock market,” Tallon explains.

Owner-Occupiers

Business owners are increasingly opting to buy rather than lease. “They want control over their premises, to stop paying rent to someone else and invest in their future,” says Tallon.

Investors Looking for Strong Returns

Industrial property offers a simple, more predictable investment than many other asset classes: “Industrial tenants are typically easier to manage, requiring fewer incentives compared to retail or office tenants.”

Limited Land Availability

Tallon explains that with industrial land on the Sunshine Coast in short supply, competition is fierce, especially on the northern end of the coast: “As land becomes more scarce, demand continues to climb, pushing up prices and making well-located properties and well-designed spaces even more desirable.”

RECENT PROJECTS LEADING THE WAY

1/6 Rene Street, Noosaville

This 100m²* unit was meticulously refurbished into a modern and professional working environment in 2023 with high clearance plasterboard ceilings, a stunning venetian plaster feature wall, modern kitchen, immaculate bathroom with shower, ducted air conditioning and mezzanine storage area.

This property was sold by David and Rachel, at a premium price per m²*. “This property stood out due to its extensive refurbishment. You walk in the door and it looks and feels like a residential space,” said David. “The property sold for $8,500 per m²*. Comparable properties in the area typically range from $6,000 to $7,000 per m²*.”

The Precinct, 58 Rene Street, Noosaville

A thriving, multi-level business community with unparalleled flexibility, the Precinct caters to businesses looking for showroom-style spaces, product display areas and integrated office/warehouse facilities. Marketed by David and Rachel, it caters to people looking for compact but functional premises from 40m² to 150m².

“The Precinct is designed in a trade hub style, where businesses can utilise shared common areas, including office space and kitchenettes. This allows small industrial and trades business owners to network and create a collaborative work environment — something completely new for Noosa,” enthuses Rachel.

Quanda Business Park, 248-256 Quanda Road, Coolum Beach

A standout development that blends high-end design with industrial functionality, this brand new business park boasts 38 units that can effortlessly accommodate everything from showcasing boats or cars to running professional operations. Construction is due for completion in September.

“There has been significant enquiry on Quanda Business Park due to its premium landscaping, contemporary facade and high-quality finishes that set it apart,” says Tallon. “The development also includes caretaker’s residences with luxurious living quarters and state-of-the-art kitchens, offering a unique opportunity to combine work, leisure and living in one location.”

6/86 Quanda Road, Coolum Beach

The developer of this new property, which is available for lease, identified a gap in the market for larger units with all the bells and whistles. Tallon worked with the two owners to ensure it met the market. Located in a prime position, the large clear spanning warehouse with optional showroom has premium glass frontage, generous office/admin area, multiple toilets, shower and a kitchenette and 3 electronically operated roller doors with wide driveway.

THE FUTURE OF INDUSTRIAL SPACES

The industrial market on the Sunshine Coast is evolving at pace, driven by strong demand for high-end, flexible spaces that cater to modern business needs. From boutique manufacturers and e-commerce brands to savvy investors and owner-occupiers, buyers seek more than just a place to store goods — they want a workspace that reflects their brand, provides a comfortable environment and offers long-term value.

With extensive local market knowledge, our team is well positioned to provide guidance and advice on potential developments, along with insights into local market trends and emerging opportunities. Contact us today to discuss your next project.

Get in touch with our team on +617 5474 7600.

Offices in NOOSA | CALOUNDRA | MAROOCHYDORE

*Approx.

Subscribe Now

Join the Market Intel community to get exclusive commercial property insights from the Ray White Commercial Noosa & Sunshine Coast North team delivered to your inbox every month:

1. Market trends
2. Insider tips for investors
3. Insights into the local market

Complete the form below to subscribe.